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Loan Agreement — CDBG and Inclusionary Housing Funds Santa Ana Arts Collective, LP February 2, 2016 Page 2 development designed for artists of all disciplines. The proposed project would promote the City's goal of providing long -term affordable housing and meeting the affordable housing goals as identified in the City's Strategic Plan, Housing Element and Consolidated Five Year Plan. The proposed project would offer a preference to applicants who are artists and working artist families within Santa Ana with a process that would meet Fair Housing and funding requirements. Although an artist population is preferred, this preference will not override the requirement for long -term financial success. The project includes a community art gallery, an art garden on the ground floor, a maker space, digital and media lab, music room, performing arts room, and activity programs. EngAGE, the project's service provider, will provide high - quality coordination services designed to improve the quality of life for tenants, including after - school tutoring, computer training, creativity programs, and other activities. EngAGE provides their services at no cost to the tenants and have the following goals for their programs: (1) create programs in partnerships with residents; (2) provide a minimum of two programs per month; and (3) achieve engagement of at least 40% of residents in at least one program /event per month. This proposed project will be one of the first projects under the City's new adaptive reuse ordinance, the first affordable housing complex with an artist preference, and the first project funded with Inclusionary Housing funds in the City. The Santa Ana Arts Collective received six letters of support from the local community and residents that included the Grand Central Art Center, Orange County School of the Arts, and Media Arts Santa Ana. The City's financial consultant, Keyser Marston Associates Inc. conducted a financial review of the proposed project based on its submission to the RFP and will be providing a detailed subsidy layering analysis once all other financing is in place in accordance with federal regulations. The proposed unit mix and rent restrictions are as follows: The total project cost to acquire, rehabilitate and provide the proposed level of affordability in the building is $26,558,333. The tables below summarize the proposed funding sources and anticipated costs of the project: 25B -2 30% AMI 50% AMI 60% AMI Unit Size No. Units Proposed Rent No. Units Proposed Rent No. Units Proposed Rent Total 1 Bedroom 2 $527 24 $878 - -- - -- 26 2 Bedroom 2 $633 - -- $1,055 12 - -- 14 3 Bedroom 2 $731 - -- - -- 15 $1,462 17 Total 6 24 27 57 The total project cost to acquire, rehabilitate and provide the proposed level of affordability in the building is $26,558,333. The tables below summarize the proposed funding sources and anticipated costs of the project: 25B -2